few questions, due 3 hours, easy I supply other student answers

Student answer

1. The convergence theory is based on uniformity of technological and market forces of industrial society. Through different kinds of studies, we can conclude that the mix of various employment patterns (low wage, HRM, Japanese-oriented, and joint team-based) influences on the national employment-related institutions. 

The results of MIT project suggest 4 important trends in employment relations: 

a. "an increasing important locus for strategy and decision making on employment relations"

b. "the decentralization of firm level structures"

c. increase of "the investment and training skills development"

d. "unions are experiencing major challenges in most countries as a pace of restructuring intensifies".

The simple globalization theory states that through globalization there are slight national differences in a pattern of employment relations. For laws of national policy autonomy, strategy of unions has to be flexible.

The institutionalist approach states that the differences in national-level institutions are enduring and this will increase divergence between national patterns of employment relations. Ferner and Hyman write that the states posses a key role in re-configuration of the relations between social regulation and markets (including labour markets).

All these theories states about economical, social, and technological environment. The changes in these environment can influence on the collective bargaining, and this effects the role of unions in society.

According to M. Olson, social incentives, influencing the labour forces, organize large groups into small social interactive subgroups.

We can conclude that globalization is going to cause the difficulties in supporting the power of a special interest group.  

2. The article "Sweden's Taxes - the Hidden Costs of the Welfare State" states that Sweden taxes have been increasing in order to expend the local bureaucracy. According to Oslon, a stable society (as Sweden one) strengths a special interest group and increases the complexity of regulation (of Sweden society). The Sweden example of wasteful spending of society surplus (collected from taxes) by the government is best explained by Oslon's theory about special interest groups. 

Student answer

a) Convergence suggests that technological and market forces associated with industrialization, demand more uniform employment relations across countries. Simple globalisation refers to the result of preassure created by international economic activity that leads to a more uniform national economic activity, as well as employment relations, policies and practices. Institutionalist however, argues that due to endurance of national-level institutions, convergence is unlikely to occur in national patterns of employment relations. Varieties of capitalism (VoC). There are two main variances of capitalism deriving from it; Liberal market economies (LMEs) which rely on markets and hierarchies, and coordinated market economies (CMEs) which use non-market mechanisms. The model suggests that institutional arrangements are more likely to result from international market demand. Olson's implication nine suggests that distributional coallitions are a great deterrent for economic growth. We read that the institutionalist model predicts an endurance of national-level institutions which would increment the power among groups of interest, which are favored by government policies. Implication seven suggests that distributional coalitions slow down the process to adapt to new technologies in a society which could prevent convergence from happening across countries.

(b) The extrordinary high leves of taxion taking place in Sweden corroborates Olson's argument against special-interest groups, collusions, and organizations which decrease the rewards to productive work and in turn increase leisure, resulting in lower levels of ecnomic growth.

Student answer

)   Explain the following theories:  convergence, simple globalization, institutionalist, and varieties of capitalism (VOC).  Compare each with Olson’s theory.

·         Convergence is the idea that employment relations across countries, because of the effects of globalization, will tend to move toward similar, more uniform practices.

·         Simple globalization is the idea that the forces of globalization on any given market are so strong that the autonomy of any single country is essentially non-existent. This would drive all markets to similar practices.

·         VOC is the idea that different capital markets will eventually shift toward one of two different structures (CMEs and LMEs). Within these two structures, the policy decisions of the individual governments will have a profound effect on employment relations in that country.

The first two theories are largely incompatible with Olson’s theory, in that they disregard the potential impact of government decisions (and the relationship between government and labor) on employment relations in a country.

The VOC theory, however, would not contradict Olson in the sense that it still highlights how important a government’s labor policies can be. Olson’s theory may also line up well with the VOC idea that there are distinct types of capital markets, each with its own unique structure.

(b)   Read this article about taxes and government inefficiency in Sweden:   http://www.newgeography.com/content/00814-swedens-taxes-the-hidden-costs-the-welfare-state   Which theory, convergence, simple globalization, institutionalist, VOC  or Olson, best explains the issues described in the article?  Due March 16.

·         The problem outlined in the above article is clearly an Olsonian problem of excessive government spending on administrative/labor costs. The amount taxed and spent in Sweden is not due to any form of global pressures (in fact, global pressures would probably push the government the other way): It is due to a poorly managed government that finds itself beholden to its special interests.

Student answer

a) Explain the following theories:  convergence, simple globalization, institutionalist, and varieties of capitalism (VOC).  Compare each with Olson’s theory.

Convergence -  theory of collective behavior that suggest like- minded people converge to collective behaviors that fit their predispositions.

Simple globalization- through globalization there is a difference of employment relations that has a goal to make the economy more unified.

Institutionalist- Institutional theorists assert that the institutional environment can strongly influence the development of formal structures in an organization, often in a more significant way than market pressures.

VOC is the theory that different capital markets will shift towards one of two different structures. In the CME’s and LME’s, the policy decisions of the individual governments will have an apparent effect on the employment relations going on in that particular country.

           (b) Which theory, convergence, simple globalization, institutionalist, VOC  or Olson, best explains the issues described in the article?  Due March 16.

The problem taking place in Sweden substantiates Olson's argument against excessive spending due to unecessary government spending in ways that they see fit subsequently resulting in a decrease of growth in the Swedish economy.

 

Student answer

A) Explanation of the following theories :

Convergence theories assume that there are common pressures across societies to adopt a particular Employment Relation system.

Simple globalization are economic pressures associated with globalization that will result in a convergence of employment relations policies and practices. Globalization is used to distinguish changes in the international economy. It refers to growing of the international economy coming together.  It is associated with growth in cross national trade, foreign direct investment  and growth in international financial transactions.

Institutionalist approach : diversity in national patterns of Employment Relation will persist. Existing Employment Relations institutions mediate and filter those pressures, and will do so differently in different countries.

VOC :  the two types of capitalism are Liberal market economy (LME) and Coordinated market economy (CME). Each of these forms of capitalism include a set of ‘complementary’ institutions that form the basis of a country’s economic competitiveness and lead to good economic outcomes. In LME, firms resolve coordination problems mainly through hierarchies and markets  ex) arm’s length relations and high levels of competition. In CME, firms resolve coordination problems not only through hierarchies and markets but also through non-market institutions  ex) strategic interaction.

Olson's theories state contributions without selective incentives can occur if groups involved are small enough and if the cost-benefit ratio of action in the common interest is favorable . ex) they may work together to secure a “group optimal outcome.”

 

B)  The article describes an Olson issue dealing with the social services and taxes in Sweden.  As in the case with the Swedish government,  Olson explains if special interest organizations emerge, redistributing income, not creating it, it will contribute to overall inefficiency.

Student answer

(a) Explain the following theories:  convergence, simple globalization, institutionalist, and varieties of capitalism (VOC).  Compare each with Olson’s theory.

Convergence theories assume that there are common pressures across societies to adopt the best employment relations system.

Simple globalization theory suggests that the economic pressures associated with globalization will result in a convergence of employment relations policies and practices.

Institutionalist theories suggest that despite common pressures associated with globalization, diversity in national patterns of employment relations will persist. 

The varieties of capitalism (voc) theory suggests that there are two ideal forms of capitalism (LMEs & CMEs), and each form of capitalism includes a set of complementary institutions that form the basis of a country's economic competitiveness and lead to good economic outcomes. 

Olson's theory states that there will be no countries that attain symmetrical organization of all groups with a commom interest and therefore attian optimal outcomes through comprehensive bargaining. He believes that no society can achieve a rational or efficient economy through bargaining amongst organized groups because certain groups will be left out. So organized groups will focus on their own gains and put the cost onto the unorganized groups. The convergence and simple globalization theories do not support Olson's theory, while the institutionalist and voc theory does.

(b) Which theory, convergence, simple globalization, institutionalist, VOC  or Olson, best explains the issues described in the article?

Olson's theory best supports the article. In chapter 2 of Olson's book, he explains that when there is an insuffucient degree of self interest in a government, the large groups, if composed of rational individuals will not act in their group interest. Things besides collective good must be provided by governments to account for their existence, and if they only provide collective goods, then the rational individuals have no reason to support the government. Resulting in compulsury taxation. So because of the way money is allocated in Sweden, "taxes discourage work and encourage tax avoidance."

Student answer

(a) Explain the following theories:  convergence, simple globalization, institutionalist, and varieties of capitalism (VOC).  Compare each with Olson’s theory.

Convergence theories are defined as how industrialization forces and collectivism enhances the pressure to adapt to the best employee relation. Simple Globalization theory explains how globalization leads into pressure to reach employment relation. Institutionalist theories distinguish that although theres much pressure being focused with globalization,  convergence would fail into helping to form employee relations. Varieties of capitalism is when the different capital markets shift towards one of two different structures, coordinated market economies and liberal market economies. In these two structures, the policy decisions of the individual have different effects on the employee relations happening in that specific country.

Olson’s theory is that workers work better and more efficiently towards their goal when it involves incentive. He believes that when a large group forms to achieve an efficient outcome within the society, they tend to succeed. The convergence and simple globalization theory does not agree with Olson’s theory while institutionalism and voc does.

 

           (b) Read this article about taxes and government inefficiency in Sweden:  http://www.newgeography.com/content/00814-swedens-taxes-the-hidden-costs-the-welfare-state   Which theory, convergence, simple globalization, institutionalist, VOC  or Olson, best explains the issues described in the article?  Due March 16.

Olson’s theory of special interest best explains the issues being described in this article because the government focused their self interest on labor costs. Sweden’s increased taxes was a sign of expanding the economy, however it was being spent wastefully. With this form of excessive spending it can only result in the decrease of social services and taxes in Sweden.